Physical Damage Insurance
First-party auto coverage for damage to an insured vehicle, usually provided through collision and comprehensive coverage.
What does Physical Damage Insurance mean in insurance?
Physical damage coverage protects the covered vehicle itself. Collision covers impact or overturn losses, while comprehensive - also called other-than-collision - covers causes such as theft, fire, hail, vandalism, and animal strikes. A deductible generally applies.
Exam-ready definition
Collision and comprehensive coverage that pays for direct damage to a covered auto.
Example
Collision may pay when an insured backs into a post; comprehensive may pay when hail damages the same car.
Common misconception
Physical damage coverage does not pay for another person's injuries or property. Those losses fall under liability coverage.
Sample insurance exam question
Which auto coverage normally pays when hail damages the insured vehicle?
Show answer
Comprehensive, or other-than-collision, coverage.
Related insurance terms
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Which of the following best describes the concept of Physical Damage Insurance?